Higher housing and food costs continue to push up inflation.

ASB has admitted to being a little bit surprised by the latest rising inflation.

The Consumer Price Index has risen by 1.9 percent on the past year, largely on the back of housing related costs, including rent, building and insurance.

ASB Economist, Kim Mundy, said there's still uncertainty around the future.

"We do think that inflation could fall again before it rises back to that 2 percent level."

Mundy said there was a slight reprieve for Canterbury rent prices, down 1.9 percent, their the fifth consecutive decrease.

"But in other big cities in Auckland and in Wellington we're continuing to see high levels of rent increases."